Chief executive Oliver Blume told shareholders that the job reductions would affect the entire group, including brands such as Audi and Porsche, according to a report by BBC.

“In total, around 50,000 jobs are due to be cut by 2030 across the Volkswagen Group in Germany,” Blume said in a letter to shareholders included in the company’s annual report.

The automaker reported a sharp financial setback in 2025, with net profit plunging 44% to €6.9 billion, marking its weakest performance in nearly a decade.

Revenue remained largely flat at around €322 billion, while operating profit nearly halved to €8.9 billion, according to the Europe-based carmaker, as reported by Euronews.

Although Volkswagen recorded growth in Europe, it was not sufficient to offset declining sales in China and North America.

The group delivered about 8.98 million vehicles worldwide in 2025, representing a 0.5% drop from the previous year.

The company has also faced pressure from tariffs imposed by US President Donald Trump.

At the same time, Volkswagen is confronting intensifying competition in China, long considered its most important growth market, where domestic electric-vehicle makers such as BYD, Geely and Nio are rapidly gaining market share. closing the technological gap and gaining market share, reported Euro News.